During its latest financial year, Adidas's º£½ÇÊÓƵ branch experienced a drop in sales exceeding £100m despite some positive numbers from its retail stores. The Stockport-headquartered division recorded a turnover of £1.15bn for 2023, which signifies a decrease from the £1.23bn registered in 2022.
According to the accounts submitted to Companies House, the brand attributed the decline to a £88m reduction in wholesale revenue and a £37.7m decrease in online sales. Despite the fall in these areas, Adidas saw an increase in sales via its own retail outlets by £14.9m during the year, as reported by .
The figures also disclosed that Adidas º£½ÇÊÓƵ's pre-tax profit fell from £37.4m to £30.8m.
In a statement endorsed by the directors, the company acknowledged: "2024 has started with high inflation, interest rate rises and geopolitical tensions."
Yet, the company remains optimistic about the future, stating: "Despite the above challenges, the 2024 outlook is positive with consumer demand still high for Adidas products mainly driven by the terrace trend in lifestyle."
Anticipation surrounding major sporting events is likely to boost the brand's performance, as Adidas anticipates a commercial uplift from Euro 2024 and the Olympic Games in Paris in the current financial period.
The business also emphasised its customer relations and continued development initiatives, saying: "The company maintains good relationships with its customers and continues to develop its business with them."
Further investments in product innovation and marketing efforts across the º£½ÇÊÓƵ are set to continue, alongside the brand's focus on connecting with consumers through their retail and e-commerce platforms, underscoring the ongoing strategy to engage directly with its market base.
Adidas' wholesale revenue experienced a drop from £851m to £753m within the year, and its online sales also saw a decrease from £293.6m to £255.8m. However, there was an increase in its retail sales, rising from £91.4m to £106.4m.
These º£½ÇÊÓƵ results follow the wider group's upward revision of its full-year guidance due to better-than-expected results during the second quarter of its current financial year.
The group further stated that it anticipates its operating profit to reach approximately €1bn (£883.2m), having been previously projected to total around €700m (£583.4m).
